Binance Announces Removal of Several TrueUSD Trading Pairs – Understanding the Implications

Last updated:
March 13, 2024 17:12 EDT
| 2 min read

Binance, the premier cryptocurrency exchange globally, is set to remove several TrueUSD spot trading pairs along with certain BNB pairs, which is their proprietary currency.

The public statement issued on March 13 indicates that Binance will end support for TrueUSD pairs including PENDLE/TUSD, COMP/TUSD, and EDU/TUSD.

It will also discontinue the BNB pairs ARPA/BNB and EDU/BNB. These changes are slated to come into effect on Friday, March 15, 2024, at 3:00 am UTC.

Availability of Other TUSD Trading Pairs on Binance

Binance references issues such as insufficient liquidity and substantial trading volumes as motives for the cancellations, as indicated by the announcement.

The exchange stresses the significance of maintaining trading integrity, which leads to occasional evaluations of trading pairs like TrueUSD.

The exchange assures its clientele that the termination of certain TrueUSD and BNB trading pairs doesn’t signify a full dismissal of these assets from Binance. Users can still engage in other available TrueUSD and BNB trading options.

Beyond just deactivating the aforesaid TrueUSD pairs, Binance suggests that clientele disable any associated trading robots to prevent undesirable financial outcomes or locked funds.

“Binance will discontinue Spot Trading Bots for the specified trading pairs on March 15, 2024, at 03:00 UTC. Clients should adjust or cease their Spot Trading Bots accordingly to avert potential losses,” the firm advised.

Recent Challenges with TrueUSD

TrueUSD has undergone several hurdles since the end of 2023, facing both a security compromise and a temporary detachment from the US dollar valuation earlier in the year following a large-scale sell-off.

Following an imbalance in TUSD trades on Binance on January 15, 2024, it was noted that sell pressures heavily outweighed buy orders, leading to a noticeable dip in TUSD value to a low of $0.984, with a significant difference between sell and buy volumes during a 24-hour period.

Concerns regarding TrueUSD’s reserve backing were elevated, with flaws found in its API that failed to display the US dollar collateral valuation.

The TrueUSD team pointed to mining-related arbitrage opportunities on Binance Launchpool as a factor for its de-pegging incident, stating that measures are being planned to rectify the situation through global banking partnerships.

Prior episodes of delisting on Binance have occurred, with the platform recently discontinuing NGN trading pairs and ceasing all services involving the Nigerian Naira on March 5.